Finlay Enterprises hopes to begin negotiations on revolver renewal during the summer

By Sara Rosenberg

New York, June 18 - Finlay Enterprises Inc. anticipates beginning the process of renewing its revolving credit agreement during the summer, according to a filing with the Securities and Exchange Commission. The company's existing $275 million revolver expires in March 2003.

The current revolver includes a $50 million acquisition facility and is used to finance working capital needs. Interest on the revolver can range from adjusted Libor plus 100 to 200 basis points, depending on the company's financial performance, the filing said.

In each year, the New York, N.Y. fine jewelry retailer must reduce the outstanding balance under the revolver to $50 million or less for 30 consecutive days. Furthermore, the company must reduce the letter of credit balance to under $20 million or less for 30 consecutive days. At May 4, borrowings under the revolving credit agreement were $52.2 million, compared to a zero balance at Feb. 2, 2002 and $90.2 million balance at May 5, 2001. Average amounts outstanding for the 13 weeks ending May 5, 2001 were $65.8 million. Average amounts outstanding for the 13 weeks ending May 4, 2002 were $39 million, according to the SEC filing.

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